Fairfax Financial Holdings, Ltd. - Securities Class Action

Company and Case Information

IMPORTANT INFORMATION | INDEX OF FILINGS | SEARCH

Home

Index of Filings

News and Press Releases

Filings

Litigation Activity Indices

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright (c) 2001
Stanford Law School

Fairfax Financial Holdings, Ltd. Summary: The original class action lawsuit was filed on behalf of all persons who purchased the debt securities (defined below) of Fairfax Financial Holdings, Ltd., against defendants Fairfax and certain of its officers and directors, alleging violations under the Securities Exchange Act of 1934, 15 U.S.C. sections 78j(b) and 78t(a) and Rule 10b-5, promulgated thereunder, 17 C.F.R. sections 240.10b-5. Specifically, the Complaint alleges that statements in the Prospectus omitted material information including, inter alia, (1) failure to detail the Company's increasing liquidity problems; (2) failure to detail second quarter 2004 transactions between Odyssey and Fairfax and to explain that the arrangements were structured to avoid a liquidity squeeze at Fairfax that would have occurred during the quarter; (3) failure to detail Fairfax's exposure stemming from the need to collateralize run-off business; (4) failure to detail the Company's reserves and whether they were adequate to address the Company's growing run-off operations; (5) failure to detail the Company's growing exposure to finite reinsurance agreements within the overall organization; and (6) failure to detail Fairfax's highly leveraged balance sheet and further omissions concerning the Company's equity position. The claims brought with respect to the Prospectus seek to pursue remedies under the Securities Act of 1933 (the "Securities Act") 15 U.S.C. sections 77k and 77l.

The debt securities at issue in this Complaint are: 7.75% notes maturing 04/26/12 ("7.75% Notes"); 8.25% notes maturing 10/01/15; 6.875% notes maturing 4/15/08; 8.3% notes maturing 4/15/26; and 7.375% notes maturing 4/15/18.

The Complaint also alleges claims on behalf of a sub-class of Class members who also suffered damages upon purchasing the 7.75% Notes pursuant to or traceable to the Company's August 24, 2004 prospectus ("Prospectus") filed by Fairfax with the SEC on August 25, 2004 to effectuate a $95 million aggregate principal amount debt flotation (the "Sub-Class").

On August 28, 2006 the judge ordered all related cases to be consolidated, appointed lead plaintiffs and approved selection of lead counsel. Plaintiffs filed their Consolidated Amended Complaint on February 8, 2007. Defendants have filed motions to dismiss the Consolidated Amended Complaint on June 28, 2007 and July 25, 2007.

On November 2, 2009, an order was granted by the judge withdrawing CI Canadian Small/Mid Cap Fund; CI Canadian Asset Allocation Fund; CI Canadian Investment Fund; CI Canadian Investment Corporate Class; Synergy Canadian Style Management Corporate Class; Synergy Tactical Asset Allocation Fund; Skylon High Yield Trust; High Yield & Mortgage Plus Fund; DDJ High Yield Fund; and DDJ U.S. High Yield Trust (collectively, the "CI Funds" or "Lead Plaintiff"), as Lead Plaintiffs.

On March 29, 2010, Judge George B. Daniels granted the defendants’ motions to dismiss for lack of subject matter jurisdiction. Judgment was entered the next day.

On April 27, 2010, the plaintiffs filed a motion for reconsideration of the judgment, which was denied on June 8, 2010.

On July 9, 2010, the plaintiffs filed a notice of appeal from the March 29th and June 8th orders dismissing the case.

On July 29, 2010, an Order relating to Non-party Plumbers, Pipefitters & MES Local Union No. 392 Pension Fund's motion to intervene was denied.

According to the Mandate from the Second Circuit Court of Appeals entered on June 14, 2011, the appeal was dismissed.

INDUSTRY CLASSIFICATION:
SIC Code: 6331
Sector: Financial
Industry: Insurance (Prop. & Casualty)

COMPANY/ISSUER NAME:	Fairfax Financial Holdings, Ltd.
COMPANY/ISSUER TICKER:	FFH
COMPANY WEBSITE:	http://www.fairfax.ca

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Kenneth Parks, et al. v. Fairfax Financial Holdings, Ltd., et al.

COURT: S.D. New York	DOCKET NUMBER: 06-CV-2820
JUDGE NAME: Hon. George B. Daniels
DATE FILED: 04/11/2006	SOURCE: Notice of Filing
CLASS PERIOD START: 03/24/2004	CLASS PERIOD END: 03/21/2006
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Glancy Binkow & Goldberg LLP (Los Angeles) 1801 Ave. of the Stars, Suite 311, Los Angeles, CA, 90067 (voice) 310.201.915, (fax) 310. 201-916, info@glancylaw.com Kahn Gauthier Swick, LLC (New Orleans) 650 Poydras St. Suite 2150, New Orleans, LA, 70130 (voice) 504.455.1400, (fax) , lewis.kahn@kglg.com Law Offices of Brian M. Felgoise, P.C. Esquire at 261 Old York Road, Suite 423, Jenkintown, PA, 19046 (voice) 215.886.1900, (fax) , securitiesfraud@comcast.net Law Offices of Charles J. Piven, P.A. World Trade Center-Baltimore,401 East Pratt Suite 2525, Baltimore, MD, 21202 (voice) 410.332.0030, (fax) , pivenlaw@erols.com Milberg Weiss Bershad & Schulman LLP (New York) One Pennsylvania Plaza, 49th Floor, New York, NY, 10119 (voice) 212.594.5300, (fax) 212.868.1229, info@milbergweiss.com Murray, Frank & Sailer LLP 275 Madison Ave 34th Flr, New York, NY, 10016 (voice) 212.682.1818, (fax) 212.682.1892, email@murrayfrank.com Pomerantz Haudek Block Grossman & Gross LLP (New York) 100 Park Avenue, 26th Floor, New York, NY, 10017-5516 (voice) 212.661.1100, (fax) 212.661.8665, info@pomerantzlaw.com/ Schatz & Nobel, P.C. 330 Main Street, Hartford, CT, 06106 (voice) 800.797.5499, (fax) 860.493.6290, sn06106@AOL.com Schiffrin & Barroway LLP 3 Bala Plaza E, Bala Cynwyd, PA, 19004 (voice) 610.667.7706, (fax) 610.667.7056, info@sbclasslaw.com Scott & Scott LLC (Connecticut) P.O. Box 192, 108 Norwich Avenue, Colchester, CT, 06415 (voice) 860.537.5537, (fax) 860.537.4432, scottlaw@scott-scott.com Wechsler Harwood LLP 488 Madison Avenue 8th Floor, New York, NY, 10022 (voice) 212.935.7400, (fax) , info@whhf.com Wolf Haldenstein Adler Freeman & Herz LLP (New York) 270 Madison Avenue, New York, NY, 10016 (voice) 212.545.4600, (fax) 212.686.0114, newyork@whafh.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 12

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violations of Federal Securities Laws - Jury Trial Demanded
Type: Complaint		Date on the document: 04/11/2006
US District Court Civil Docket
Type: Docket		Date on the document: 10/10/2006

REFERENCE COMPLAINT

Kenneth Parks, et al. v. Fairfax Financial Holdings Limited, et al.

COURT: S.D. New York	DOCKET NUMBER: 06-CV-2820
JUDGE NAME: Hon. George B. Daniels
DATE FILED: 02/08/2007	SOURCE: Docket
CLASS PERIOD START: 05/21/2003	CLASS PERIOD END: 03/22/2006
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Grant & Eisenhofer (New York) 45 Rockefeller Center, 630 Fifth Avenue, New York, NY, 10111 (voice) 646.722.8500, (fax) 646.722.8500, lawyers@gelaw.com Grant & Eisenhofer (Wilmington) 1201 N. Market Street, Suite 2100, Wilmington, DE, 19801 (voice) 302.622.7000, (fax) 302.622.7100, lawyers@gelaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE REFERENCE COMPLAINT
Amended Consolidated Class Action Complaint
Type: Complaint		Date on the document: 02/08/2007
Order Granting The CI Funds' Motion To Withdraw As Lead Plaintiff
Type: Order Dismissing LP/LC (Drop)		Date on the document: 11/02/2009
Memorandum Decision And Order
Type: Order		Date on the document: 03/29/2010
Judgment
Type: Other		Date on the document: 03/30/2010
Decision and Order
Type: Order		Date on the document: 06/08/2010
Notice of Appeal
Type: Notice of Appeal		Date on the document: 07/09/2010
Decision And Order
Type: Order		Date on the document: 07/29/2010
Summary Order
Type: Order		Date on the document: 06/14/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 06/14/2011

OTHER DOCUMENTS
Class Action Complaint
Case Name and/or Number: Gail Chellel, et al. v. Fairfax Financial Holdings, Ltd., et al.
Type: Complaint		Date on the document: 04/21/2006
Class Action Complaint for Violations of Federal Securities Laws - Jury Trial Demanded
Case Name and/or Number: Jaffe, et al. v. Fairfax Financial Holdings, Ltd., et al.
Type: Complaint		Date on the document: 04/24/2006
Class Action Complaint For Violations Of Federal Securities Laws--Jury Trial Demanded
Case Name and/or Number: Shane Johnson, et al. v. Fairfax Financial Holdings, Ltd., et al.
Type: Complaint		Date on the document: 05/04/2006
Class Action Complaint For Violations Of Federal Securities Laws
Case Name and/or Number: Fisher, et al. v. Fairfax Financial Holdings, Ltd., et al.
Type: Complaint		Date on the document: 05/12/2006

WARNING AND DISCLAIMER OF LIABILITY:
The information included on this Web site, whether provided by personnel employed by Stanford Law School or by third parties, is provided for research and teaching purposes only. Neither Stanford University, Stanford Law School, nor any of their employees, agents, contractors, or affiliates warrant the accuracy or completeness of the information or analyses displayed herein, and we caution all readers that inclusion of any information on this site does not constitute an endorsement of the truthfulness or accuracy of that information. In particular, this Web site contains complaints and other documents filed in federal and state courts, which make allegations that may or may not be accurate. No reader should, on the basis of information contained in or referenced by this Web site, assume that any of these allegations are truthful.

Go to Search page | Go to Case Index page | Back to Top

�